Changi Airports Int. acquires Stake in India’s First Aerotropolis

Changi Airport Group’s international arm, Changi Airports International (CAI), has taken a 26% stake in Bengal Aerotropolis Projects Limited (BAPL). The project signifies CAI’s first investment in an Indian greenfield airport city project.

The Durgapur Aerotropolis is India’s first aerotropolis project and its first privately owned merchant airport.

The aerotropolis involves the setting up of an industrial park, a logistics hub, an information technology park and a township around the privately owned greenfield airport.

BAPL has already entered into a Joint Venture Development Agreement with West Bengal Industrial Development Corporation, the West Bengal State Government nodal agency, for facilitating the implementation of the project.

Overall, the project aims to attract about US$ 2.5 billion of investments.

CAI has in place a Technical Service Agreement (TSA) to support the planning and development of Durgapur Airport, and will enter into an Operations and Management Agreement (OMA) to assist in the management of the airport once construction is completed.

The comprehensive TSA will involve CAI providing a suite of technical services for the development of Durgapur Airport. Support from CAI will come in 4 phases spread over a period of 24 months. These include reviewing the Airport Master Plan, selecting consultants in the pre-construction phase, review of the detailed engineering design and drawings of the airport and the related infrastructure and preparations for operational readiness during the set-up phase of the airport opening.

The TSA also involves CAI facilitating the training of BAPL senior management in Singapore. The comprehensive training programmes aim to provide senior level managers of BAPL with an in-depth understanding of the complexities of running an airport.

The OMA will involve CAI deploying a resident team in Durgapur for the operations and management of Durgapur Airport. The resident team is expected to manage the landside, apron, commercial and operations activities in the airport.

Mr Wong Woon Liong, CAI’s Chief Executive Officer, said the strategic stake demonstrates CAI’s commitment in India. “The deal signifies an important step forward for CAI to participate in the growing Indian aviation industry. With this definitive milestone, we will use our expertise to support the expansion of the Durgapur Aerotropolis into a major industrialised area.”

Mr Arvind Pande, BAPL Chairman added, “CAI has an enviable track record and stands for the best in terms of experience and technology in this space and that is reflected in the number of successful projects they have executed. This alliance will add momentum to the Durgapur project and enable us to turn this into one of the most efficient airports in the country.”

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